Acquisition of Parador was the biggest contributor to our topline growth
Cement

Acquisition of Parador was the biggest contributor to our topline growth

Established in 1946, HIL is a flagship company of the CK Birla Group. It is the world’s largest manufacturer and seller of fibre cement roofing and offers comprehensive building solutions. For the past 70 years, the company has achieved market leadership by developing and marketing advanced, high-quality, innovative, sustainable products for the building materials industry. It has six major brands: Charminar, Birla Aerocon, Charminar Fortune, Hysil, Birla HIL and recently acquired German wooden flooring brand Parador. Dhirup Roy Choudhary, Managing Director, shares more....

Name one major challenge faced in FY2018-19. How did the company tackle it?
It was to achieve the aggressive growth plan made for the polymer solutions business. Major capacity expansion along with new product introduction happened during the year in this business and the operation process took some time to stabilise. Proper coordination and meticulous planning combined with focused efforts on expansion of distribution network and branding led to our growth.

Name one decision you consider the biggest contributor to the company’s growth in FY2018-19.
The biggest event in FY2018-19 that contributed to the company’s topline growth was the acquisition of vertically integrated premium wooden flooring brand, Parador. The company has two manufacturing plants—one each in Germany and Austria—and its products are sold in 86 countries across the globe. Parador is the No. 1 brand in Germany and has won many accolades year on year for its technology, innovation, design and quality..

What is one single factor you avoided that could have otherwise impacted the company’s topline and bottomline?
Nothing specific was avoided. All possible actions were taken to ensure significant growth both in the topline and bottomline.

What are your plans for the company’s growth in FY2019-20? 
We have worked on the cultural and financial integration of Parador in the past year and the integration process was very smooth and successfully completed. We have been continuously working on improving operating efficiencies and Lean-Six Sigma initiatives have been undertaken both at HIL and Parador, which we believe will result in substantial cost reduction going forward. Plans are in place to continue to grow the polymer solutions business aggressively. The new non-asbestos, cement-based corrugated roofing sheet under the brand Charminar Fortune has shown good traction and work has already been initiated to put up additional capacity in the coming year. Capacity expansion is also proposed in the building solutions business as the existing blocks and panels plants are at 95 per cent capacity utilisation.

HIL
Net Sales EBITDA Reported PAT
FY19 (Rs Billion) 22.08 2.81 1.01
Growth over FY18 (%) 72.54 65.03 25.56

Established in 1946, HIL is a flagship company of the CK Birla Group. It is the world’s largest manufacturer and seller of fibre cement roofing and offers comprehensive building solutions. For the past 70 years, the company has achieved market leadership by developing and marketing advanced, high-quality, innovative, sustainable products for the building materials industry. It has six major brands: Charminar, Birla Aerocon, Charminar Fortune, Hysil, Birla HIL and recently acquired German wooden flooring brand Parador. Dhirup Roy Choudhary, Managing Director, shares more....Name one major challenge faced in FY2018-19. How did the company tackle it?It was to achieve the aggressive growth plan made for the polymer solutions business. Major capacity expansion along with new product introduction happened during the year in this business and the operation process took some time to stabilise. Proper coordination and meticulous planning combined with focused efforts on expansion of distribution network and branding led to our growth.Name one decision you consider the biggest contributor to the company’s growth in FY2018-19.The biggest event in FY2018-19 that contributed to the company’s topline growth was the acquisition of vertically integrated premium wooden flooring brand, Parador. The company has two manufacturing plants—one each in Germany and Austria—and its products are sold in 86 countries across the globe. Parador is the No. 1 brand in Germany and has won many accolades year on year for its technology, innovation, design and quality..What is one single factor you avoided that could have otherwise impacted the company’s topline and bottomline?Nothing specific was avoided. All possible actions were taken to ensure significant growth both in the topline and bottomline.What are your plans for the company’s growth in FY2019-20? We have worked on the cultural and financial integration of Parador in the past year and the integration process was very smooth and successfully completed. We have been continuously working on improving operating efficiencies and Lean-Six Sigma initiatives have been undertaken both at HIL and Parador, which we believe will result in substantial cost reduction going forward. Plans are in place to continue to grow the polymer solutions business aggressively. The new non-asbestos, cement-based corrugated roofing sheet under the brand Charminar Fortune has shown good traction and work has already been initiated to put up additional capacity in the coming year. Capacity expansion is also proposed in the building solutions business as the existing blocks and panels plants are at 95 per cent capacity utilisation. .tg {border-collapse:collapse;border-spacing:0;} .tg td{font-family:Arial, sans-serif;font-size:14px;padding:10px 5px;border-style:solid;border-width:1px;overflow:hidden;word-break:normal;border-color:black;} .tg th{font-family:Arial, sans-serif;font-size:14px;font-weight:normal;padding:10px 5px;border-style:solid;border-width:1px;overflow:hidden;word-break:normal;border-color:black;} .tg .tg-6yhw{font-weight:bold;background-color:#ffcb2f;color:#000000;border-color:#000000;text-align:right;vertical-align:top} .tg .tg-fea7{font-weight:bold;background-color:#ffcb2f;color:#000000;border-color:#000000;text-align:left;vertical-align:top} .tg .tg-5agr{color:#343434;border-color:inherit;text-align:left;vertical-align:top} .tg .tg-39dc{color:#343434;border-color:inherit;text-align:right;vertical-align:top} HIL Net Sales EBITDA Reported PAT FY19 (Rs Billion) 22.08 2.81 1.01 Growth over FY18 (%) 72.54 65.03 25.56

Related Stories

Gold Stories

Next Story
Infrastructure Urban

BMW Ventures Secures Rs 249.83 Million (mn) Steel Orders

BMW Ventures Limited said it has secured two purchase orders totalling Rs 249.83 million (mn) from Lata Projects Limited for the supply of TMT steel FE-550D grade for three units of 800 megawatt (MW) capacity at the USCTPP Adani project. The orders were disclosed to the stock exchanges under Regulation 30 of the SEBI Listing Regulations and carry a contract value inclusive of all taxes.\n\nThe company stated that the orders will be executed within eight weeks from the date of the purchase orders and that the contract provides for 100 per cent advance payment with specified guarantees. The supp..

Next Story
Real Estate

Housing Sales Dip in Top Eight Cities in Q2, Pune and Bengaluru Hit Hard

Housing sales across the top eight cities fell six point one per cent year-on-year to 91,729 units in the April-June quarter from 97,674 a year earlier, PropTiger’s Real Insight Residential report showed. The moderation reflected seasonal pre-monsoon effects and heightened buyer caution amid the US-Iran conflict. New launches rose six per cent to 89,161 units. The impact was concentrated in technology-driven markets, with Pune and Bengaluru among the hardest hit. Pune recorded the steepest annual decline at 20.8 per cent, with sales falling to 12,642 units, while Ahmedabad declined 20.2 per ..

Next Story
Infrastructure Urban

India And ADB Sign US$230 Million Loan To Modernise Chennai Water

The Government of India and the Asian Development Bank (ADB) signed a US$230 million loan to modernise and expand water supply and sanitation infrastructure in Chennai. Saurabh Singh, Deputy Secretary, Department of Economic Affairs (DEA), signed on behalf of the Government of India and Mio Oka, Country Director of ADB’s India Resident Mission, signed for the lender. The engagement was guided by Baldeo Purushartha, Joint Secretary (ADB and Japan), DEA. The Chennai Climate-Resilient Water Security and Sewerage Project aims to improve access to safe and reliable water and sanitation citywide w..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code